Koss(KOSS) ZACKS·2025-02-04 18:05Core Insights - Koss Corporation's shares have declined 1.6% since the earnings report for the quarter ended December 31, 2024, compared to a 0.5% decline in the S&P 500 index during the same period [1] - Over the past month, Koss's stock has decreased by 21.5%, while the S&P 500 has grown by 0.6% [1] Financial Performance - For the fiscal second quarter, Koss reported earnings per share (EPS) of 1 cent, a significant improvement from a loss of 3 cents per share in the prior-year quarter [2] - The company achieved net sales of 3.4 million in the same quarter last year [2] - Koss recorded a net income of 0.3 million reported in the same period last year [2] Key Business Metrics - Koss's gross profit for the fiscal second quarter reached 1.1 million in the same period last year, driven by higher sales volumes and an improved product mix [3] - The gross margin expanded to 39.5%, an increase from 33% a year ago, benefiting from increased direct-to-consumer (DTC) sales and stronger European distribution [3] Operating Expenses - Selling, general, and administrative (SG&A) expenses for the second quarter slightly declined to 1.58 million in the prior-year period [4] - The operating loss narrowed to 0.5 million in the same quarter last year [4] Management Commentary - Chairman and CEO Michael J. Koss emphasized that sales to the company's two largest export distributors were crucial for revenue growth, with European market sales more than doubling year-over-year due to strong demand for new products [5] - Higher-margin DTC sales and a substantial custom order from a new U.S. customer contributed to improved financial performance, although these gains were partially offset by lower sales to the education sector, e-tailers, and domestic distributors [5] Supply Chain Considerations - Koss noted a slight increase in freight costs, with further increases anticipated, and the company is closely monitoring potential supply chain disruptions and tariff changes that could impact operations [6]